OKEX Denies Guilty in the BCH Futures Issue: Customers’ Lousy Management Led to Losses

Negative OKEX Denies Guilty in the BCH Futures Issue: Customers’ Lousy Management Led to Losses

Author: Ali Raza

TL;DR
  • Due to BCH hard fork and following hash wars, numerous investors experienced significant losses, with a lot of them blaming cryptocurrency exchange OKEX for it.
  • The exchange was accused of an attempt at market manipulation by ending BCH futures contracts trading early and suddenly, while the prices were damaging to investors.
  • OKEX denied these allegations, explaining its acts and methods, and claiming that it acted the way it did to protect the market and customers' interests. Furthermore, OKEX considers legal actions for hurting its reputation.

Recent events regarding the Bitcoin ecosystem has brought a lot of changes that affected the entire crypto space. Numerous coins lost a lot of their value, and the community is looking for someone to blame.

On November 14th, just one day before the BCH hard fork, OKEX announced that BCH futures would stop trading "at 9:05 am and be delivered at 10:00 am Nov 14, 2018, CET (UTC +1)" because of an upcoming hard fork. However, during the same day, they also announced the decision to use the last traded prices as delivery prices, since it was not possible to compose an index for delivery.

The exchange was directly accused of making market manipulations via Medium post written by an entity known as AMBER AI, a global electronic trading corporate.

Several media outlets reported on this and similar accusations against OKEX, stating that the exchange is blamed for causing losses via settling the BCH futures contracts without prior warning. The decision to do so apparently negatively affected multiple investors, since the contracts were closed at a level that did not reflect proper market prices.

OKEX Response: Amber is HK based while OKEX is banned in HK

When asked by CryptoPotato editor, OKEX denies any attempt to make market manipulations or purposeful wrongdoing. Instead, OKEX declares that "the exchange has no institutional client profile going by the name of Amber AI, which is supposedly a Hong Kong-based firm." OKEX also claims that they serve no customers in Hong Kong and this is according to the local laws.

As for the Amber AI account mentioned in the Medium post, this is classified as an individual account belonging to a person that is not a resident of Hong-Kong.

In regards to allegations of the early settlement of BCH futures contracts, OKEX stated that "the decision to do so was implemented due to market integrity and concern regarding customer interests." Furthermore, they quoted the clause 2.5 of their Futures Trading User Agreement, which states that the exchange may postpone or early settlement and delivery of futures contracts in case of market anomalies occurring prior or after settlement and delivery.

Considering the likely effects that BCH hard fork was expected to have on the market, OKEX decided to deliver all BCH futures contracts in advance, solely to protect the customers and the markets. As for the settlement price, it is usually constructed based on the spot index, which was impossible to create due to the fact that other BCH index constituents ( Coinbase and Binance in addition to OKEX itself) already paused trading. Under these circumstances, the exchange made a decision which they believed to be the best option.

OKEX considers legal actions against Amber AI

Therefore, all allegations of manipulating the market made by Amber AI are classified as false by OKEX itself, and the exchange will continue to view them as such due to the absence of any evidence that would prove otherwise. However, because such accusations are false, and have damaged the exchange's reputation, OKEX reserves the right to take legal actions against Amber AI for interfering in their business.

OKEX concluded the response by claiming that Amber AI experienced losses due to their lousy management plan, which is not the exchange's fault. They argue that the majority of their users supported the decision regarding the BCH futures contracts.

Be the first to know about our price analysis, crypto news and trading tips: Follow us on Telegram or subscribe to our weekly newsletter.

More news for you:

11/20/2018 / 09:52:07 Source: cryptopotato

Crypto News | | Exchange|Market|Business|Trading
BTC
1 BTC=$3,935.60
XRP
1 XRP=$0.3207
ETH
1 ETH=$145.80
EOS
1 EOS=$3.82
BCH
1 BCH=$141.01
XUC
1 XUC=$2.11

News Feed 50

Ccn Neutral - Vanguard CIO Greg Davis Just Issued a Dire Warning for the US Stock Market read more.
02/12/2019 / 20:32:35
Bitcoin.Com Neutral - Two US Public Pension Funds Back New $40 Million Crypto VC read more.
02/12/2019 / 20:32:33
Ambcrypto Neutral - Bitcoin SV’s [BSV] Craig Wright hits back at WikiLeaks as Twitter feud escalates read more.
02/12/2019 / 20:30:20
Cointelegraph Neutral - Top 20 Cryptos Make Small Gains While Stock Futures and Oil Indexes See Green read more.
02/12/2019 / 20:29:00
Cointelegraph Neutral - Japanese IT Giant GMO Confirms Launch of Yen-Backed Stablecoin GYEN in 2019 read more.
02/12/2019 / 20:22:00
Cryptobriefing Neutral - Blockchain Advances In Africa, Overcoming Funding Hurdles read more.
02/12/2019 / 20:03:52
Newsbtc Neutral - Police Mistake Crypto Mining Rigs For Drug Den in Raid Gone Wrong read more.
02/12/2019 / 20:01:30
Dailyhodl Neutral - Bitcoin Lightning Torch Hits Tron CEO Justin Sun – Will Kobe Bryant Grab the Crypto Bounty Next? read more.
02/12/2019 / 19:58:54
Ccn Neutral - Exclusive: Bitcoin Cash Developer Amaury Sechet Comes Clean on Satoshi Claims read more.
02/12/2019 / 19:53:47
Cointelegraph Neutral - China: New Guidance to Implement Blockchain in Agriculture Finance Sector read more.
02/12/2019 / 19:51:00
Ambcrypto Neutral - #XRP/USD Price Analysis: Coin could soon go for a bullish ride read more.
02/12/2019 / 19:30:38
Cryptoslate Neutral - Morgan Creek’s Venture Fund Raised $40 Million to Invest in Blockchain and Cryptocurrency read more.
02/12/2019 / 19:30:19
Cryptobriefing Neutral - Western Union Acknowledges Experiments With Ripple Tech read more.
02/12/2019 / 19:14:03
Trustnodes Neutral - Former Prime Minister Bigs Up Bitcoin Amid Power Struggle in Bangkok read more.
02/12/2019 / 19:13:38
Newsbtc Neutral - XRP and Ripple Stand to Benefit if the World Bank and McKinsey Projections are True read more.
02/12/2019 / 19:00:56
Bitcoinist Neutral - Santander Bank Ordered to Keep Brazilian Bitcoin Exchange Account Open read more.
02/12/2019 / 19:00:47
Ambcrypto Neutral - Cryptocurrency News – 12th Feb – Ripple partner raises $1.7M, Coingate adds LTC LN support and more read more.
02/12/2019 / 19:00:32
Cryptoglobe Neutral - 'It's Virtually Certain': Bitcoin ETF Will Be Approved, Prominent Analyst Argues read more.
02/12/2019 / 18:50:00
Ccn Neutral - This US Senator Wants to Legalize Weed, Should Investors Get High on Pot Stocks? read more.
02/12/2019 / 18:30:33
Ambcrypto Neutral - Bitcoin [BTC] volatility works to investors’ advantage, says Financial advisor read more.
02/12/2019 / 18:30:05
Coinspeaker Neutral - SEC to Clarify ‘Overly Broad’ Regulation for Crypto Token Sales read more.
02/12/2019 / 18:30:02
Cryptobriefing Neutral - Pensions Count On Bitcoin Eggs For Retirement read more.
02/12/2019 / 18:24:55
Bitcoin.Com Neutral - Crypto Broker Voyager Digital Lists on Canada’s TSX Venture Exchange read more.
02/12/2019 / 18:21:57
Coingape Neutral - BitMEX Research On Next Global Crisis: Retail Banking & Payment System Unlikely to be Under Threat read more.
02/12/2019 / 18:21:13
Cryptopotato Neutral - Crypto Market Update Feb.12: Bitcoin Dominance Declines as Altcoins Skyrocket read more.
02/12/2019 / 18:15:52
Ethereumworldnews Neutral - EOS (EOS) Price Initiating Break Above the Daily Range Bound read more.
02/12/2019 / 18:11:41
Cryptoslate Neutral - Ripple Grants $2 Million to University of Kansas, Funds 29 Universities to Conduct Blockchain and Crypto Research read more.
02/12/2019 / 18:08:54
Cointelegraph Neutral - Mt. Gox Trustee May Have Crashed Bitcoin in 2018 by Dumping It on an Exchange, but There is Still Hope read more.
02/12/2019 / 18:08:00
Cryptonewsreview Neutral - Australian police mistake crypto mining rig for suspected pot farm read more.
02/12/2019 / 18:03:55
Newsbtc Neutral - Are TRX Prices Dumping Because “Changpeng Zhao and Justin Sun are Scheming”? read more.
02/12/2019 / 18:00:58
Ambcrypto Neutral - Cryptocurrency-hijacking malware ‘Clipper’ discovered on Google’s Play Store read more.
02/12/2019 / 18:00:16
Ccn Neutral - Gaming Giant Activision Blizzard Stock Could Get Crushed [Again] Tonight read more.
02/12/2019 / 17:59:00
Cryptopotato Neutral - #Weekly Price Analysis Overview Feb.12: Bitcoin, Ethereum, Ripple, Dash and Monero read more.
02/12/2019 / 17:58:39
Bitcoinmagazine Neutral - Morgan Creek Bags $40M Raise, Attracts Industry First Funding From Pensions read more.
02/12/2019 / 17:51:05
Cointelegraph Neutral - Software Giant Oracle Expands Its Enterprise Blockchain Platform read more.
02/12/2019 / 17:50:00
Cryptonewsreview Neutral - Firefox to offer cryptomining blocking in May release read more.
02/12/2019 / 17:36:48
Livebitcoinnews Neutral - Ethereum (ETH) Up 3 Pct at $120, as Bitcoin (BTC) Rallies 5 Pct at $3,600, Litecoin Also Poised to Rise read more.
02/12/2019 / 17:36:29
Cointelegraph Neutral - Payment Processor Netpay to Integrate Blockchain-Based Tool: Report read more.
02/12/2019 / 17:32:00
Ambcrypto Neutral - Tron [TRX/USD] Technical Analysis: Cryptocurrency succumbs to the bear again as prices stagnate read more.
02/12/2019 / 17:30:21
Ethnews.Com Neutral - Distributed Digest: Tuesday, February 12, 2019 read more.
02/12/2019 / 17:30:12
Dailyhodl Neutral - Payments Giant Western Union Preparing for Crypto, Tests Ripple and XRP read more.
02/12/2019 / 17:20:41
Cryptoglobe Neutral - Cryptocurrency Analysis Firm Chainalysis Raises $30 Million read more.
02/12/2019 / 17:20:00
Ccn Neutral - Did TRON Acquire a Liability in $126 Million Purchase of BitTorrent? A Record 3,300 Lawsuits Hit Platform’s Users read more.
02/12/2019 / 17:16:51
Ambcrypto Neutral - Bitcoin [BTC]: WikiLeaks provides evidence debunking Craig Wright’s claim to be Satoshi Nakamoto read more.
02/12/2019 / 17:15:47
Ccn Neutral - Why Asset Manager Canaccord Says Tesla Stock Will Explode by 40% in 2019 read more.
02/12/2019 / 17:15:08
Cryptobriefing Neutral - Bitcoin Cash / USD Technical Analysis: Still Going Down read more.
02/12/2019 / 17:02:39
Ambcrypto Neutral - Ripple’s CTO clarifies that Interledger Protocol [ILP] is not connected to the RippleNet yet read more.
02/12/2019 / 17:00:29
Bitcoinist Neutral - Binance Chain Decentralize Exchange Testnet Will Launch Next Week read more.
02/12/2019 / 17:00:06
Coindesk Neutral - Co-Founder Quits Avalon Mining Chip Maker Canaan Over ‘Differences’ read more.
02/12/2019 / 17:00:06
Newsbtc Neutral - Bitmain S15 Firmware “Very Buggy”, Will This Claim Affect BTC Prices? read more.
02/12/2019 / 16:58:38
Negative
3.2%
Neutral
96.0%
Positive
0.8%
Mixed
0%

Latest comments: